TMTB: PANW RNG First Takes

PANW -13% with slight rev beat but weak revenue and billings guide. This is a crowded long near highs and expectations were high given positive checks so won’t be received well.

RPO "only" grew 20% vs. 25% last q and 29 and 33% prior 2 Qs so can’t just blame on billings…

As a reminder they blamed shorter duration on deals last q — we’ll see how CEO explains this miss. We’ll be listening to call to hear if its a product/firewall issue or something bigger…

Other cyber stocks down in sympathy: ZS -3%, CRWD -4%

FY GUIDANCE
Guides billings $10.10B to $10.20B, saw $10.7B to $10.8B, EST $10.76B
Q3 Guidance
Guides billings $2.30B to $2.35B, EST $2.63B
Guides ADJ EPS $1.24 to $1.26
Guides revenue $1.95B to $1.98B, EST $2.04B
Q2 Results
ADJ EPS $1.46
Revenue $1.98B, +19% y/y, EST $1.97B
Product revenue $390.7M, +11% y/y, EST $363.3M
Subscription and Support revenue $1.58B, +22% y/y, EST $1.61B
Deferred revenue $4.92B, +25% y/y
R&D expenses $447.9M, +11% y/y, EST $443.3M